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SIP Calculator

Plan, Invest, Grow - Calculate Systematic Investment Plan Returns Online Now!

 

What is SIP?

 

A Systematic Investment Plan (SIP) is a strategy of investment ideal for those with a slightly high risk-appetite. It allows individuals to invest a fixed amount regularly, typically monthly, quarterly, or annually, so they may indulge in disciplined investments.. SIPs are known to help build a substantial corpus over time by allowing investors to stay consistent with their investments, with scope for review and revision.

SIPs are known to enable investors to purchase units of a scheme at regular intervals, which helps in averaging the cost of investment and mitigating market volatility. It encourages discipline around saving and investing, making it an ideal choice for long-term wealth creation. SIPs are a popular choice among investors due to their flexibility, affordability, and the potential for significant returns through the power of compounding.

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What is an SIP Calculator?

 

After knowing what an SIP investment is, an idea of the returns can be estimated with the help of a simple online calculator.

An SIP calculator is a financial tool that helps investors estimate the returns on their SIP investments. By inputting variables such as the monthly investment amount, the expected rate of return, and the investment duration, an SIP calculator provides an approximate future value of the investment. This helps investors plan their financial goals and understand the potential growth of their investments.

How Does an SIP Calculator Work?

How Does an SIP Calculator Work?

  • An online SIP calculator simplifies the process of estimating the returns on your SIP investments. Here’s a step-by-step guide on how it works.
  • Inputting of Details
  • Enter the monthly investment amount, the expected annual rate of return, and the investment duration.
  • Calculation
  • The calculator for SIP uses compound interest formula to estimate the future value of your investments.
  • Results
  • It displays the total corpus accumulated, including the invested amount and the returns earned. 
  • Here is how an SIP calculator helps you with estimates that can help you with your SIP plans.
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FV = P [ (1+i)^n-1 ] * (1+i)

WHERE,

  • FV denotes the Future value or the amount you get at maturity.

  • P denotes the Amount you invest through SIP

  • i denotes the Compounded rate of return
  • n denotes the Investment duration in months
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Step-Up SIP Calculator

A step-up SIP calculator allows investors to increase their SIP contributions periodically. This feature helps in aligning investments with increasing income levels and inflation, ensuring a higher corpus over time. The step-up SIP calculator considers the incremental investment amounts to project the future value accurately.

SIP Compounding Calculator

The SIP compounding calculator considers the effect of compounding on SIP investments. By reinvesting the returns earned, the investment grows exponentially over time. The SIP compounding calculator helps in understanding the power of compounding and its impact on the investment value.

What are the Advantages of Investing via a SIP?

Investing in SIP offers numerous benefits, making it a preferred choice for many investors. Here are some key advantages.
 

 

Disciplined Savings

Encourages regular savings, fostering a disciplined investment habit.

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Rupee Cost Averaging

Mitigates the impact of market volatility by averaging the purchase cost of units.

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Power of Compounding

Lets investors earn returns on the returns, significantly boosting the investment over time.

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Flexibility

Lets investors begin with small amounts and increase the investment as their income grows.

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Goal-Oriented

Helps in achieving long-term financial goals such as buying a house, children's education, and retirement planning.

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Convenience

Allows automatic deductions from your bank account, which makes investing hassle-free.

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What are the Benefits of Using an SIP Calculator?

An SIP calculator online offers several benefits that enhance the investment planning process.

 

Accurate Projections

Provides accurate estimates of future returns based on the inputs provided.

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Informed Decisions

Helps investors make informed decisions by showing the potential growth of their investments.

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Time-Saving

Simplifies complex calculations, saving time and effort.

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Goal-Setting

Assists in setting realistic financial goals by understanding the potential outcomes.

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Comparison

Enables comparison between different investment scenarios by adjusting variables such as investment amount and duration.

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Financial Planning

Aids in better financial planning by providing a clear picture of the investment growth.

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How to Use the IndiaFirst Life Systematic Investment Plan Calculator?

With a good idea of what SIP investments are, using the IndiaFirst Life SIP calculator is straightforward. Follow these steps to get estimates from an online SIP compound interest calculator:
 

Step 1

Enter the amount you wish to invest on a monthly basis.

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Step 2

Select the number of years you plan to invest for.

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Step 3

Enter the anticipated annual return rate.

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Step 4

Click the calculate button on the online SIP investment calculator to view the estimated future value of your investments.

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Frequently Asked Questions

What Are the Types of SIPs?

Answer

There are different types of SIPs to cater to various investor needs. These include regular SIP, step-up SIP, flexible SIP, perpetual SIP, and trigger SIP.

By understanding the various types of SIPs available, investors can choose the one that best suits their financial objectives and investment style. 

Should I buy separate life insurance?

Answer

Getting life insurance coverage should be a fundamental step when it comes to financial planning. Investments are also crucial, but they need not come at the cost of your insurance needs. However, if you are looking to create investments alongside life insurance, without having to buy separate plans, you may want to consider life insurance plans like ULIPs, which offer an investment component alongside life insurance.  

Can I pause my investments in an SIP?

Answer

Yes, you may be offered the facility to pause SIP investments temporarily. This feature allows investors to pause their SIPs for a few months during financial emergencies or other situations. After the pause, SIP investments resume automatically. 

Can I renew an SIP?

Answer

Yes, you can renew an SIP. If your existing SIP tenure is about to end, you can choose to renew it for a further period. Renewing an SIP helps in maintaining the investment continuity and achieving long-term financial goals without any interruptions. 

 

What are the benefits of SIP?

Answer

SIPs offer numerous benefits such as disciplined savings, rupee cost averaging, power of compounding, flexibility in investment amounts, convenience of automatic deductions, and alignment with long-term financial goals. They are an ideal choice for investors seeking a systematic and efficient way to build wealth over time. 

Can I modify my SIP amount?

Answer

Yes. Often, investors are allowed to modify their SIP amount. You can increase or decrease the investment amount as per your financial situation and goals. This flexibility helps in managing your investments better and adjusting them according to changing financial circumstances.

What is the maximum tenure of an SIP?

Answer

The maximum tenure of an SIP varies depending on the scheme and the investor’s choice. Generally, SIPs can be continued for as long as you wish, with common tenures ranging from 1 year to 30 years or more. Longer tenures benefit from the power of compounding, resulting in higher returns.  

 

How much money can I invest into an SIP?

Answer

The amount you can invest in an SIP depends on your financial goals, income, and risk appetite. Typically, there is no maximum limit, and you can start investing with amounts as low as ₹500 per month. It is advisable to choose an investment amount that you can consistently maintain without affecting your other financial commitments. 

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